NJ's housing market wades through foreclosures

Waiting for New Jersey's housing market to pick up some speed? You might want to grab a chair.

A report released Friday provided a mixed bag for the Shore's home owners - fewer sales, but higher prices in July.

The New Jersey Association of Realtors reported that sales of single-family homes in Monmouth County fell 9.7 percent in July from the same month a year ago. The median price of $420,000 was up 4.7 percent during that time.

Sales in Ocean County fell 15.9 percent. The median price of $275,000 was up 4.2 percent, the Realtors group said.

“As the market sits right now, both buyers and sellers are in a good position,” said Cindy Marsh-Tichy, the association's president, noting that low interest rates remain low (helping buyers) and prices are rising (helping sellers).

But the prospect for a sharp recovery are dim, mainly because New Jersey has the nation's highest share of mortgages that either are in foreclosure or are headed that way.

Patrick J. O'Keefe, director of economic research for CohnReznick, found 11.6 percent of mortgages statewide were either in foreclosure or at least 90 days overdue in the second quarter. By comparison, 4.8 percent of percent of mortgages nationwide were in the same category.

A big reason for the disparity: New Jersey is a judicial foreclosure state, which requires lenders to go through a more rigorous process to foreclose.

But it can't be the only one. Nineteen other states are judicial foreclosure as well, according to RealtyTrac.

The state's economy is doing the housing market few favors. O'Keefe notes that the rate of new foreclosures during the second quarter was more than double the national average.